No headline - 2008-12-11 00:25:28.262584

By Gargi Chakrabarty, Rocky Mountain News (Contact)

Published December 11, 2008 at 12:05 a.m.

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Points of contention

State oil and gas regulators on Wednesday approved new rules for drilling in Colorado. Here are a couple of the most controversial regulations:

* Wildlife restrictions

Initial draft version: Restrict drilling during certain times of the year to protect wildlife habitats, but operators can bypass by consulting with the state Division of Wildlife, coming up with comprehensive drilling plans or restricting development.

Final version: No timing restrictions. Companies instead should pursue consultation with state wildlife officials or a comprehensive drilling plan in wildlife-sensitive areas.

Reaction: The oil and gas industry says the Division of Wildlife still could recommend timing restrictions on drilling. Also, in case a landowner does not consent to the proposed wildlife conditions, a permit could be withheld by the director of the Oil and Gas Commission - an authority that, the industry says, the director doesn't have under current laws.

* Drilling pit restrictions

Initial draft version: Requires permits for drilling pits that hold water produced from gas wells. The pits should be constructed in a way to prevent adverse environmental effects to air, water, soil or biological resources.

Final version: Requires a variance for pits that contain water produced from gas wells. To get a variance, an operator must prove the pits won't have any adverse effect to air, water, soil or biological resources.

Reaction: The final version is a step backward from the draft version, said industry counsel Ken Wonstolen.